From here we go to the cash budget. We need to know cash receipts, cash disbursements,

Cash flows$/$deficit$,$ and the financing section. Vaughan's cash guidelines are as follows:

They have a line of credit that can be accessed in $$1,000$ increments at an annual interest

rate of $6\%.$ Money will be borrowed on the last day of a given month and paid back on the

last day of the month when it can be$.$ Minimum cash balance required by Vaughan is $$50,000.$

The beginning cash balance on July $1$ is $$50,000.$ Interest is paid when money is paid back.